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Does The Mexican Auto Industry Threaten The U.S?

Since the development of NAFTA in 1994, the Mexican auto industry has grown into one of the world’s leaders of making engine vehicles and parts. Makers from everywhere throughout the world, including the US, have built up businesses there.

According to OICA statistics in 2015, Mexico had 3.6 million vehicles of which more than seventy-five percent were sent out. Since 2000, creation has grown at a yearly rate of 4.5 percent.

Mexico is currently the greatest supplier of vehicles to the US with $47.3 billion of Mexican-made units in 2016. They also sell $51.6 billion in auto parts.

These numbers caught the attention of President Donald Trump, who claims that Mexico is taking US employments. He also says he would hit Mexican imports with different taxes to rebuff US organizations from migrating their offices abroad.

However, the auto business is not an exchange with restrictions. The US is on course to send out almost $30 billion in vehicles and parts to Mexico this year, second to Canada. The auto making exchange is an unpredictable inventory network with parts regularly moving overseas.

While it is true Mexico has been significantly more dynamic on the auto front than the US, results don’t consider whether the company could arrive to get into Mexico’s lower paid and very productive workforce.

From 2010 to 2015 non-US car makers grew production in the US by 114%, while GM and Ford expanded by 9%.

Clearly, the rise of the Mexican auto industry hasn’t significantly hurt employment or production in the U.S. Since the recession, the U.S car market has grown at least 50%.